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ISSUE NO 343

The African Lakes sale – questions begin to pile up

The sale of African Lakes (the owner of pan-African ISP Africa Online) has had more twists and turns than a Grand Prix race-track. Everyone involved – those selling the company and the two potential buyers – probably only agree on one thing: the sale ought to have been done by now. Russell Southwood looks at the lengthening number of questions emerging from this deal not yet done.

On 28 January 2007 in issue 340 we announced erroneously that African Telecoms Company (ATC) had secured 52.66% of African Lakes and increased its offer to £18.50 a share, giving the deal a total value of GBP5.04 million.

So in one corner you have African Telecoms Company, a grouping that includes Richard Bell, Kenyan ISP Wananchi, several local Kenyan investors and the US Schneider Media and Holding Group.

And in the other corner is South African incumbent telco Telkom that is trying to put together a regional acquisitions strategy that will equip it to face a competitive future. True to form, it refused to say what it was doing: “The reports linking Telkom SA as a bidder for Africa Online are speculative and Telkom will not comment on media speculation”. Telkom had made no public offer at this point despite having been in discussion since an earlier point in 2006. The African Lakes Board did not recommended the ATC offer on the basis that it could obtain more money for shareholders from another bidder, the as-yet-unnamed Telkom.

In the third corner is African Lakes that is chaired by David Montgomery, whose main claim to fame has been cutting the cost base of the UK’s Mirror Newspapers after the death of Robert Maxwell.

ATC thought it had secured victory because it had acquired an “irrevocable” on the shares of one of the key shareholders, RAB Capital (18.9% of the total shareholding at that point). On 8 February ATC formally issued notice of its increased offer. The offer expires on 23 February.

This triggered two things: a frantic scramble by ATC and African Lakes to sign up shareholders to their cause and the need for the somewhat indecisive Telkom to issue a public bid.

In its 12 February press release announcing the Telkom bid African Lakes said it had “received strong support for it from shareholders holding more than 60% of the voting rights of the Company. Unfortunately the Panel ruled on Friday that of this number shareholders holding 18.9% of the voting rights cannot have their support counted in favour of the Telkom disposal as their voting rights have passed to ATC as a consequence of them accepting the ATC Offer prior to the Board concluding its negotiations for the Telkom Disposal. Furthermore, attempts by these shareholders to have their acceptances withdrawn were also deemed invalid under the conditions of the ATC Offer”.

The Telkom offer was for what was claimed would be £25 per share, valuing the deal at £9.72m. But it emerged on 15 February that as it would only be buying what must be the controlling Africa Online Company – Africa Online (Mauritius) - it would not be dealing with the historic liabilities of African Lakes as a company.

These would be dealt with using the cash from the deal and shareholders would be paid on liquidation of the African Lakes Company. Shareholders were assured that the offer figure of £25 a share had been based on a company audit of liabilities. On the same day it issued a correction saying an audit of liabilities had not been completed. Indeed a review of liabilities had only been started.

The fight to gain shareholder acceptances was clearly getting tight as on 14 February African Lakes issued a notice saying that it had exercised various share options and issued more share to T Hoare Nominees, Lesley Davey and Paul West: the latter two are both senior Managers of African Lakes and Board members. Furthermore it issued shares to African Lakes employee, George Ezzat. On being rung by a member of the ATC consortium, it is alleged that Ezzat was unaware that the shares had been issued to him.

This has been a dense and often complicated struggle for the company and in the interests of comprehension we have sought to summarise events above. But the number of questions that need answering just keeps getting longer:

- If there is no audit of African Lakes’ liabilities, how can the company say with any confidence what the final outcome price of the Telkom offer will be to its shareholders?

- What were the circumstances in which shares were issued to George Ezzat? Why (as alleged) did Ezzat know nothing about this share option issue when asked about it by an ATC shareholder? Why were additional share options granted during what was clearly an offer period when at least two offers were being publicly discussed?

- It is not clear what number of subscribers Africa Online has but it is certain that it has fewer than the figures named in the last publicly available documents. What is the number and what is the Average Revenue Per User? It is one thing for a group of private investors to take a risk of this magnitude but how does a publicly quoted company like Telkom think that it will make a return on the purchase price?

What expertise does Telkom have to run a pan-African retail ISP in competitive environments? What has been the success of its existing pan-African connectivity sales operations?

Africa Online has the potential to become a pan-African player in the new competitive landscape that includes both voice and data. But it will need determined and experienced management capable of investing more than the purchase price to take it from where it is now to a successful future. Faced with these two potential buyers, who would you choose to carry out this task?

NCC DEMANDS US$150M FOR 3G LICENCE IN NIGERIA

The Nigerian Communication Commission (NCC) has placed a reserve price of US$150 million on its Third Generation (3G) licence that it plans to issue in seven categories through public auction from April 2, this year.

NCC's Head of Public Affairs, Dave Imoko, disclosed in Abuja that the licence to be offered include universal access, digital mobile, fixed wireless access, and metropolitan fibre cable network licenses.

Other spectrum on the card were the national carrier and the private network link licenses. He explained that bidders have up to Feb. 16, to submit their letters of interest, but warned that companies applying for the licence must have no link whatsoever.

Imoko said the adoption of the auction process in the issuance of the licence was to ensure fairness and promote competition among existing telecommunication operators in the country. The issuance of the 3G licence has been limited to existing GSM operators and is expected to enhance the quality of GSM services and reduce tariffs on subscribers.

The spectrum blocks to be made available for auction include the 40MHz of spectrum within the 2GHz band. The Commission, according to him, would offer the spectrum as four paired blocks of 10 MHz.

Spectrum pairs, he added, would be separated by a 90MHz duplex spacing. "Blocks will be allocated as follows, Block A:1920-1930MHz paired with 2110-2120 MHz, Block B: 1930-1940MHz, paired with 2120-2130MHz, Block C: 1940-1950, paired with 2130-2140MHz and Block D: 1950-1960MHz paired with 2140-2150MHz."

The statement added that "Spectrum will be allocated on a service and technology neutral basis without the specification of guard bands. Licensees will be required to co-ordinate spectrum use to avoid interference.

"However, applicants according to the notice will not be required to submit financial or technical plans in the pre-qualification process, except details of company ownership structure and confirmation of compliance with the rules of the auction.

"To participate in the auction, a bidder must be a limited liability company incorporated in Nigeria and must not be involved with any other bidder.

"A Consortia according to the statement may bid for a licence subject to the requirement that they include a Nigerian telecommunications licensee. Bidders will also be required to lodge a $15million dollars (i.e.10% of Reserve Price) Intention to Bid Deposit with the Commission.

The auctioning process will commence on the second of April following the receipt of the expression of interest on February 16, while issue of information memorandum a week later.

(SOURCE: This Day)

AREEBA DRAGGED TO COURT AGAIN IN GHANA, THIS TIME OVER QoS

A class action has been taken against Scacom Ghana Limited, operators of Ghana’s biggest mobile phone network, Areeba, for violating relevant provisions of the National Communications Authority (NCA) Act and regulations for high quality of service.

The action comes in the wake of two legal suits initiated by two shareholders over their interests in the company following its merger with South African MTN. Also joined to the latest law suit is the NCA, for failing or neglecting to carry out its regulatory high quality telephone services for its customers.

The action was filled by the Centre for Public Law, a non-profit public interest and human rights organisation, and its Executive Director, Dr Dominic Ayine, on February 13, 2007 on behalf of similarly affected customers. The plaintiffs have accused Areeba of breach of contract and are seeking general and punitive damages against it, as well as an order for restitution of all money found to have been unjustly collected and received by the company as of consequence of its acts and omissions.

According to them, the deliberate refusal of Areeba to open its system up for easy inter-connectivity with other networks in Ghana amounts to unfair competition contrary to the NCA Act and the Protection Against Unfair Competition Act.

They are also seeking an order of perpetual injunction to restrain Scancom Ltd, its agents or assignees from engaging in the conduct that was the subject matter of the suit. Similarly the plaintiffs are seeking an order of mandatory injunction to compel the NCA to enforce Scancom’s obligation under its licence to expand its network capacity and coverage and improve its service quality as well as its inter-connectivity agreements with other cellular networks.

In their statement of claim, the plaintiffs stated that Scancom Ltd was registered and licensed by the NCA to provide mobile phone services, saying figures in the public domain indicated that Areeba was the market leader in the provision of mobile or cellular phone services with more than 2.5 million subscribers quoted on the website of the NCA.

The NCA, they said was the statutory agency responsible for the regulation of providers of communication services, including, but not limited to, the operations of the companies, entreprises and individuals which provided fixed and mobile telecommunication services. The NCA’s mandate is derived from the NCA Act, 1996 (Act524) which established the authority.

According to the plaintiffs, their action was on behalf of similarly situated persons and all of those who resided in Ghana and obtained telecommunication services from Areeba and who had been adversely affected and suffered material injury or financial loss and infringement of their rights as a result of the said acts and omissions. They said Areeba’s services were of two plans to individuals and business customers, namely, the “Pay As You Talk” (prepaid) service plan, which was used with GSM 900 compatible cellular phones and the “Pay Monthly” (postpaid) service plan, both of which were offered directly to customers or through designated agents.

The plaintiffs stated that at all material times Scancom Ltd had failed or neglected to provide good quality cellular services for them in that they had almost always encountered network congestion, frequent call dropping, unusual background noise preventing clarity in telephone conversation, inter-connectivity problems with other networks, among other problems.

They stated that they were daily confronted with and frustrated by Areeba’s network congestion problems, such that they had to dial approximately between five and 10 times before achieving connectivity and very often every failed dial attempt was met with the automated response, “The Areeba number you have dialled cannot be reached at this moment. The mobile equipment is either switched off or out of coverage area.” According to them, that automated response was materially false and misleading, since Areeba prided itself as having nation-wide coverage, and also portrayed the customers as being responsible for failed attempts to put through calls (for example switching off their mobile phones), instead of placing the responsibility on Areeba.

They maintained that the representation that the mobile equipment was either switched off or out of coverage area was not only false but also wilful since Areeba know or ought to know that it was false at the material time it was made. As a consequence of the material facts stated, the plaintiffs said Areeba’s prepaid customers in particular lost their telephone credit for units on their expiry date, thereby unjustly enriching Areeba since more units had to be bought after that.

According to the plaintiffs, they had suffered and continued to suffer financial loss as a consequence of the frequent call dropping resulting from network congestion. “This is due to the fact that when calls drop in the middle of a conversation , the plaintiffs have to call again, and in doing so they have to pay higher call rates per minute than would have been the case without the call dropping” they said. The plaintiffs said Areeba had deliberately and purposefully engaged in acts, methods, and practices which had frequently frustrated them in putting through calls to other cellular networks or being called by users of the services of those networks.

(SOURCE: Daily Graphic)

EGYPTIAN MOBILE MARKET STILL LAGS NEIGHBOURS - BUT SIGNS OF LIFE VISIBLE

Following Vodafone's fourth quarter KPIs late last month, its competitor in Egypt, Mobinil, has also now released results - in advance of disclosure from its parent entities Orascom and Orange - which allow an analysis of the market's performance in Q4 2006. With the news of a third entrant last year, the latter two quarters saw an obvious acceleration in growth from both players in the current duopoly, as they seek to ring-fence as many new customers as possible ahead of the increased competition.

More than double the number of new mobile customers were connected in Egypt in the second half of 2006 as in the first half, taking the national total from 14.3m at the end of June to almost 18m at the end of December.

Whilst the acceleration in net additions may be notable, the dispassionate observer cannot help but remark that the effort seems too little too late to make any significant difference to the conditions new operator Etisalat will face on entering the market later this year. Penetration at the end of December was just 22.6%, compared with rates of around 47% in Morocco, 62% in Algeria, 72% in Tunisia and almost 50% in Libya, which was just 5.5% penetrated two years earlier. What is more, of these neighbouring North African markets, only Algeria is three-way competitive, with the others still duopolies like Egypt.

Egypt was the first of the North African countries to have competition introduced, over nine years ago in Q4 1998, and it seems as though the classic duopoly culture has become very well engrained in the market - almost a tacit agreement by the two players for steady and controlled growth.

Where competition has been introduced later (these points being shown with a dot marker) markets have generally been a lot more responsive and growth has been a lot more easily stimulated. Of course, where competition was introduced later, in general the incumbent operator was at a more advanced stage of development, entry-level handsets were becoming ever cheaper, and pent-up demand - with advances in mobile communications on a global basis - was becoming ever stronger.

Local and global market conditions may not have been ideal for stimulating growth when competition was first introduced in Egypt, but they are undoubtedly so now, with the overall MEA mobile market beginning to enter the mass-market growth phase.

Whilst we do not expect the new player Etisalat to take a large amount of market share from the established two operators, we do expect its entry to catalyse a much greater level of competition in the market - indeed, as we remarked above, the prospect of its entry has already begun to do so. How each of the existing players will perform in the face of another competitor remains to be seen, but for the moment market shares are holding relatively steady, Mobinil maintaining a 51.6% share of the national customer base at the end of 2006, against 52.2% a year earlier.

Note: The Q4 2006 Penetration rates for Algeria, Libya and Tunisia are provisional estimates.

(SOURCE: Cellular News)

GEMTEL-UTL DEAL FACES TERMINATION IN UGANDA

Parliament is scrutinising the multi-million Gemtel-Uganda Telecom interconnection deal with a possibility of terminating the contract. This comes after the Information and Communication Technology Minister Ham Mulira, and the Uganda Telecom (UTL) management failed to defend circumstances under which the contract was signed with Gemtel Ltd, a Southern Sudan-based telecommunication service provider.

Johnson Malinga (Kapelabyong), the Vice Chairman of the Parliamentary State Enterprises Committee told Business Power on February 9 that the committee is not convinced with the manner in which the government handled the deal.

"As a committee we could instruct UTL to cancel this contract. But this will depend on the way UTL and government behave while giving us information about this deal. We need to know the truth. Who are the owners of Gemtel and how the country benefits from the interconnection deal since it's the country code that is being used. We shall not entertain any dilly dallying," said Malinga.

The Uganda Communications Commission (UCC) Executive Director Patrick Masambu revealed to parliament on January 29 that UTL secretly sub-contracted Gemtel Ltd to provide telephone services in Southern Sudan. Parliament wants more details on how the deal was transacted and who are the owners of Gemtel. However, neither government nor UTL has given satisfactory details.

On February 8, while appearing before the Parliamentary Statutory Committee, UTL Company Secretary Donald Nyakairu revealed Agustus Ceasar Mulenga, a Ugandan, as Gemtel's Executive Chairman.

In two contrasting accounts, Nyakairu first revealed that Mulenga lives on Malit Road, Yei town, Southern Sudan. But on further probing, Nyakairu further revealed that Mulenga has a Ugandan address on Plot 196 Upper Mawanda Road, Mulago Hill Kampala-Uganda. According to Mr Nyakairu's account, the other Gemtel owners are not known to them.

"We do not know other company owners. The Sudanese People's Liberation Movement (SPLM) government introduced Mr Mulenga to us. In all our discussions it is Mr Mulenga we have been dealing with," Nyakairu said. Maj. Gen. Gier Chuang Aluong, the Telecommunications Minister of Southern Sudan government, introduced Mulenga to UTL.

In a letter dated April 24, 2006 addressed to the then Minister of Works, Transport and Communication John Nasasira, Gen. Aluong said: "Southern Sudan is in the process of procuring an assignment of a telecommunications country code from the International Telecommunications Union (ITU). In the meantime however, Gemtel is ready to launch services but lacks a country code."

Aluong letter further said: "UTL has expressed its willingness to allow Gemtel network to interconnect with UTL network to allow the flow of traffic routed to and from the Gemtel network. This interconnection is only possible if we are allowed to use the Uganda country code (+256). Mr Mulenga will explain in detail what we intend to do in respect with the interconnection," the letter read.

Malinga insists that the contract does not define the interim period in which Southern Sudan is supposed to use Uganda's country code. "This is unfair and a justification that this was a backdoor move to defraud our country," said Malinga. In response, Dr Mulira said the interconnection arrangements between UTL and Gemtel is a normal activity, adding that that is how operators work where they do not have their own infrastructure.

Dr Mulira said: "According to the comprehensive peace agreement [signed between Sudanese Peoples Liberation Army the Khartoum government], Sudan is regarded as one country-two systems. They have parallel systems in many areas including governments. Ministries and Parliament." He added that Uganda was assisting a neighbouring country in rebuilding itself and communications was one of the critical areas in the interim while it sorted itself out.

(SOURCE: The Monitor)

MOBILE PHONES TO HELP AFRICA'S HEALTH WORKERS

Mobile phone companies have announced a new US$10 million initiative to help health workers in Africa deliver quality services to HIV/AIDS patients. The Phones for Health project will equip workers in remote areas of Rwanda with mobile phones and software for exchanging information on patients.

Paul Meyer, chairman of US-based Voxiva who designed the software, said workers would also be able to order medicines, receive news alerts and download treatment guidelines and training materials.

According to the National Institute of Statistics of Rwanda (NISR), health workers in remote areas of the country rely on paper records — often out of date — to track diseases' spread and have no transport for gathering field data or collecting medicines.

The new project aims to make things easier. Workers in the field can use phones to record patient information and send it to a central database via a high-speed network or text message. The information is then available to health officials via the Internet and can be sent to field staff by text message. If the project in Rwanda is successful, it will be extended to other African countries, as well as Asia, and will also address other diseases like tuberculosis and malaria.

The initiative is a partnership between the Global System for Mobile Communications Association (GSMA), the US President's Emergency Plan for AIDS Relief, the Accenture Development Partnership, and mobile phone operators.

It builds on a successful two-year pilot project by the GSMA and Voxiva in Rwanda. Tests were conducted in the country's eastern province in collaboration with the NISR, who used the software to record patient information normally collected on paper forms.

(SOURCE: SciDev.Net)

EMERGING MARKETS SPELL GOOD NEWS FOR THE TELECOMS INDUSTRY

By 2010, 87% of all new subscribers joining a cellular network will live in developing countries, up from an already sizeable 50% of new customers today. Rapid economic and population growth in developing regions promises major growth that telecoms companies cannot afford to ignore, say Gartner analysts.

The hunger to communicate is so strong that despite high costs, users in developing regions are prepared to spend five times more as a percentage of their disposable income on communications than people in the first world says Gartner research director Jouni Forsman.

Gartner expects worldwide cellphone connections to rise from 2,1-billion in 2005 to 3,6-billion by 2010 as another 1,5-billion people subscribe. Users in emerging markets should rise from 1,3-billion to 2,6-billion by 2010, accounting for 72% of all cellphone users.

"The rapid expansion of the telecoms industry in these markets is being fuelled by underpenetration and the fact that communication-enabled services are crucial for overall development," says Forsman. He says that those included "life enhancing" communication services such as banking, education and remote health.

A significant bottleneck preventing faster growth in emerging markets is the lack of telecoms infrastructure. No one company had all the answers, but Gartner rates Ericsson as being in a strong position to take advantage of growth opportunities in those markets, followed by Alcatel, Nokia, Siemens and Huawei.

Emerging markets will become the innovation hub of the industry as leading players use them as test beds for new technologies. That trend will continue as research and development costs are less expensive and their companies and consumers are less risk-averse, says Gartner.

(SOURCE: Business Day)

ETC PROVIDES DIGITAL EXCHANGE TELEPHONE SERVICES IN ETHIOPIA

Some 42 woreda towns of Somali State have reportedly got access to digital and exchange telephone services. Jijjiga ETC Office Manager Tesfahun Wubishet told WIC Wednesday that activities are also underway to introduce similar services to 10 other border towns in the coming four months as part of the endeavour to extend telephone services to 52 woredas in the state. Among the woreda towns, Warder, Geladin, Kelafo, Harshen, Lefeisa and Togochale got digital telephone services and the remaining exchange services, he said.

Additional 113 rural kebeles of Jijjiga, Gursum and Chinaqsen woredas have also accessed wireless telephone services, the manager said, adding that more than 2.2 million people subsequently benefited from the services.(SOURCE: The Ethiopian Herald)

IN BRIEF:

- Namibia’s sole operating cellphone company, MTC, has announced that it has signed an agreement with Motorola and the GSM Association to carry out a trial for wind and solar power systems to support cell sites in remote areas.

- National Space Research and Development Agency (NARSDA) in Nigeria announced that the country's second space satellite, Nigerian Communication Satellite (NIGCOMSAT), has been completed and is ready for commissioning. However the launch scheduled for March has been delayed until May to enable further testings.

- A Court ruling has blocked MTN Uganda from evicting a group of people who are currently occupying part of the land which houses the company's switch board at Port Bell Road, Bugolobi.

- Following the heavy floods which have been affecting the regions of Tete, Manica, Sofala and Zambezia for several weeks, the situation in Mozambique has deteriorated.An emergency crew from Télécoms Sans Frontières (TSF) was sent to assess the needs in emergency telecommunications for the humanitarian community and affected civilians.

TELECOMS, RATES, OFFERS AND COVERAGE

- Incumbent telco Botswana Telecommunications Corporation (BTC) has launched its government-backed Tswapong Rural Telecom Project, which will bring communications to seven hitherto under-served villages in the Tswapong area in the east.

- Uganda SMS information provider, True African, has announced its countrywide expansion with the opening of its first of several Bulk SMS centers up-country. This follows its partnership with Posta Uganda that will see bulk SMS centers opened throughout the Posta Uganda country offices.

- Ghana recorded the fastest teledensity growth rate in Africa last year, recording up to 22 per cent increase, as against the projected rate of 10 per cent by the International Telecommunications Union (ITU).

- Zimbabwe cellular phone service providers have virtually cut access to international calls because of unsustainable tariffs, dealing a further blow to the crumbling service industry in the country.

MINISTER ERWIN SAYS INFRACO WILL ‘BRING DOWN SA’S HIGH TELECOMS COSTS’

The new state-owned broadband entity, Infraco, "is not a telecommunications company" and its activities will complement those of state-owned Sentech as well as helping to bring down SA's high telecoms costs. That was the word last week from Public Enterprises Minister Alec Erwin, who was clarifying Infraco's role ahead of its launch next month.

Infraco owns the fibre optic cabling that was previously held by Eskom and Transnet, and government has committed to invest R1,4bn in the new company over the next three years. Erwin said Infraco would only provide broadband capacity on fibre optic cabling while Sentech would focus on addressing delivery needs in government and the broad public sector via wireless (non-fibre cable) systems.

It was unclear whether the minister's comments indicated a downgrade by government of the role of troubled Sentech, which Communications Minister Ivy Matsepe-Casaburri said last year would form the core of the wireless broadband infrastructure network that SA would use to advance its socioeconomic development goals. Erwin said last week Sentech would prioritise education and health centres.

Communications department director-general Lyndall Shope-Mafole said the presence of Infraco would expand access to broadband, making big-bulk infrastructure available for operators to use.

Infraco emerged in August when government decided to hold on to Eskom's telecommunications infrastructure and lease it to the new second network operator (SNO), Neotel, instead of selling it to the SNO as originally planned.

But there has been confusion and concern in the market about the advent of another state-owned enterprise in the telecoms sector. Erwin emphasised Infraco was not a telecoms operator but was strictly a supplier of broadband capacity between cities and between SA and the rest of the world.

One reason government went this route is that the costing and pricing of Infraco's network would be under direct government control and Erwin said it would create a reference price that would help bring down broadband costs.

It would charge on a cost-plus basis, but was not a profit maximiser. Government as its shareholder would set parameters for the on-selling margins that those who used its network would be allowed. After the initial capital injection, which it is using to pay for the Eskom assets and to recapitalise its network, Infraco is expected to avoid further subsidies from government.

(SOURCE: Business Day)

TYCO WINS CONTRACT TO BUILD KENYAN GOVT’S FIBRE CABLE

Communication in Kenya is to set for a major revolution, following the start of an undersea fibre optic link to the rest of the world through Fujairah in the Gulf of Oman. American company Tyco last week won a contract to undertake a marine survey that should be ready in two months, at a cost of Sh187 million.

The Government will invite bids any time from now for a financial arranger who will design a plan to raise money for the project, tentatively expected to be complete by early next year. The contract will be awarded competitively by April this year.

The Government, through Telkom Kenya, is working with Dubai-based Etisalat, a telecoms company, to build the cable. The private sector will be invited to either buy shares, or to prove its capacity to raise funds through plans worked out by the financial arranger.

Information and Communication minister Mutahi Kagwe says fast-tracking the East African Marine System (Teams) will ensure that Kenya does not lag behind in information and communication technology (ICT). "The East African coast is the only one without a fibre optic cable. We are racing against time," he said.

The cost of data transmission would come down, leading to lower cost of communication. The price of a megabyte is expected to plunge from a high of Sh490,000 (US$7,000) to Sh14,000 (US$200).

All East Africa countries are part of the project, while Ethiopia wants to join them. The project was conceived by the Kenya Government after it became evident that a similar one from South Africa to Port Sudan, popularly called East Africa Sub-Marine Cable System (EASSY) would not take off.

Kenya declined to sign the EASSY project protocol, citing inclusion of the New Partnership for Africa Development (Nepad) into the programme without specifying its mandate. Also, Kenya opposed Nepad's attempts to own the project, saying the group should not be involved as that would negate its noble concepts.

The country also took issue with non-involvement of the private sector as it would be difficult to implement the protocol without it, once it was signed. But Kenya will not pull out of EASSY. It will remain a key participant and use it as back-up should there be any breakdown of Teams project.

"We decided to work on a parallel project after it became difficult to make decisions on the EASSY one. The latter had too many players, some of whom were coming in every other day. But we will be involved in the project...The more the cables, the better. That will induce competition, which will bring down the prices".

(SOURCE: The Nation)

INDUSTRY POURS COLD WATER ON GOVT PHONE RATE CONCESSIONS FOR JUST 10 CALL CENTRES

It's too little, too late, say industry players of government's planned cut-rate bandwidth for 10 call centres. President Thabo Mbeki told the nation last week during his opening address at Parliament that Telkom would "apply a special low rate for international bandwidth to 10 development call centres each employing 1 000 persons". This is part of government's plans to boost business process outsourcing as it gears up to grow the economy by 6% a year.

"These centres will be established in areas identified by government. The special rate will be directly comparable to those for the same service and capacity per month offered in any of the comparable countries," said Mbeki.

While industry has welcomed cheaper rates and the much-needed boost to the economy, some stakeholders have questioned the move's relevance and narrow focus.

The Dialogue Group says the initiative will make the industry more competitive internationally, but called on government to extend it to the entire industry. CEO Jason Drew says this will give smaller operators the chance to build their businesses.

Mike van den Bergh, COO of Gateway Communications, says government should not only focus on "special cases". "If they can do it for 10 call centres, they can do it across the board."

Dimension Data subsidiary Merchants applauded Mbeki's acknowledgement of high telecommunications costs. Spokesperson Vanda Dickson says: "By default, the high rates act as an inhibitor to the growth of the international contact centre industry in SA." Merchants also hopes the incentive will boost much-needed skills.

Thembelani Tukwayo, who publishes Outsourcing2sa, a local database of contact centres vying for business, says while the move will aid job creation, it could have the unintended consequence of 'marginalising' smaller contact centres.

Telecoms service provider Connection Telecom CEO Rob Lith says government's 'special' offering in the business process outsourcing and offshoring sector is nothing new. "Telkom has, for some time, had a special solutions offering for international call centre services, which uses VOIP capabilities to provide the communications infrastructure to support call centre outsourcing services."

Dickson says cost-cutting measures such as VOIP and least-cost routing must be taken into account, otherwise the "revised rates may not be as beneficial as is needed".

Lith says current rates are, in any case, far below general call rates. He fails to see how government's announcement will benefit call centre development.

Andre Wills, analyst and MD of Africa Analysis, says the move could be worthy of a Competition Commission investigation if the development centres are vying for national call centre contracts, as this would give them an unfair advantage. However, he does not see the move being anti-competitive when it comes to bidding for international contracts, as the volume of competition from across the globe will negate the price cuts.

Two contact centre associations - neither of which wanted to be named - have said they would like some clarity on the issue, while Telkom was not immediately available for comment.

(SOURCE: ITWeb)

THREE WOMEN PLEAD GUILTY TO INTERNET SCAM IN ZAMBIA

Three women involved in a highly sophisticated internet operation and siphoning of over K66 million from various dollar and Kwacha accounts using forged Visa and Master cards yesterday pleaded guilty to all the 12 counts.

Initially, the trio, Georgina Zimba, 34, a travel agent of Lusaka's Kabulonga area Lisa Taylor, 38, marketing personnel from South Africa and Annelia Baars, 26, unemployed from South Africa had pleaded not guilty to the charges. This was when the matter came up before magistrate, Brian Simango, who also rejected their bail applications because of security reasons.

Taylor, who has three passports, a South African, British and Canadian, is alleged to have siphoned US$6,953.98. Baars had two passports, a Botswana and Ugandan and is alleged to have siphoned K10,146,500 while Zimba a Zambian had siphoned over $6,118.29. This was in a case in which the three were facing 12 counts of forgery, money laundering, obtaining goods and money by false pretences and uttering of false documents. Zimba is facing five counts of forgery, obtaining goods by false pretences, money laundering and two counts of uttering documents.

Baars is facing four counts of forgery, obtaining goods by false pretences, uttering false documents and money laundering while Taylor is charged with three counts of forgery, obtaining goods by false pretences and money laundering.

Zimba is alleged to have forged a credit card number, 4539981440047499, Baars forged two, 5255011755588888 and 4508833616284026 credit cards while Taylor also forged two credit cards numbered 5520335200244093 and 4974037313849545.

The three also obtained goods by false pretences namely, lap tops, colour-printing machine, and cell phones from Gizmos Limited and M and S Connections using the forged credit cards purporting to be genuine when in fact not.

Magistrate Simango lashed out at the women for wasting the court's time knowing well that the crimes committed were illegal and described the situation as unfair and yet they wanted a speedy trial. The matter was adjourned to February 22, for facts and sentencing and the trio remained remanded.

(SOURCE: The Times of Zambia)

ALTECH WINS TEST WIMAX LICENCE IN SOUTH AFRICA

Altech is making another bid to become a telecommunications operator after winning a test licence for mobile WiMax technology. The company is working with Samsung Electronics to set up a network to provide voice, data and high-speed internet access to hand-held devices and computers in Gauteng. The trial will involve the staff of both companies using a network built around five base stations.

CEO Craig Venter has wanted Altech to become a telecoms service provider in its own right for many months, rather than just manufacture equipment such as Sim cards and sell cellphone handsets and airtime. But Altech was expected to make its move either by acquiring or partnering with an existing telecoms player.

Instead, it has convinced the Independent Communications Authority of SA (Icasa) to grant it a test licence for a technology being touted as a quick and economical way to set up wireless networks in both rural and urban areas.

So far, Icasa has only granted coveted commercial WiMax licences to Telkom, Neotel, Sentech and the privately held internet service provider iBurst. The cellular operators MTN and Vodacom have been disappointed by Icasa's refusal to convert their test WiMax licences into commercial licences.

But Altech apparently believes it stands a strong chance of having its test licence converted into a full commercial licence as Icasa tries to create more competition. It could achieve that by granting a licence to an unexpected player rather than strengthening the already dominant existing operators.

Altech chief technology officer Steven Sidley would not say how much money is being pumped into the project.

The trial network is expected to go live in June, with Sidley saying mobile WiMax technology would be fundamental to telecommunications development in SA and the rest of Africa.

Mobile WiMax allows people to move from one area to another without dropping their voice or data call, as the signals can be passed from one base station to another. That is a significant advantage over earlier forms of WiMax, where there is no ability to hand a call from one base station to the next.

Samsung SA cellphone director Kyong Min says WiMax is ideal for Africa as it provides broadband coverage far more cheaply than rival technologies such as fibre-optic cables. "For SA at the moment, WiMax is one of the best technologies to cover large areas," he said.

(SOURCE: Business Day)

IN BRIEF:

- During the presentation of the new presidential measures to modernise education and stimulate vocational training in schools, the Tunisian Minister of Education and Training, Dr Sadok Korbi, announced that all Tunisian schools will have access to ADSL and WIMAX internet connections before June 2007.

- The Emerging Markets Group has selected the two ISPs who will design, implement and operate broadband wireless outdoor metropolitan area networks in Luxor and Sharm El Sheikh's Naama Bay in order to improve connectivity within the tourism sector. EgyNet and TE Data have been selected to develop the WiMAX networks, with the former focusing on Naama Bay and the latter on Luxor; the networks should be ready by Mid May.

MORE SCHOOLS CONNECT TO ETRANZACT PAYMENT SYSTEM IN NIGERIA

ETranzact's payment system would like to become the preferred mode of payment in Nigeria's tertiary institutions, as many more institutions have inaugurated the payment system. In a statement made available to Thisday, it said that at the last count, six universities and polytechnics have installed eTranzact payment system, including all campuses of the Law School.

eTranzact, Nigeria's premier and only multichannel payment solutions provider, has linked these schools to its payment channel, which enables students pay their tuition and other school related charges online. In addition, the schools will be able to monitor payments as they are made, thereby reducing to the barest minimum the amount of time it takes to confirm payments.

The payment system, initiated by eTranzact in conjunction with Socketworks and some banks in Nigeria, have been installed at all the campuses of the Nigerian Law School, University of Ilorin, University of Jos, University of Ibadan, Ambrose Alli University, Covenant University, and the Yaba College of Technology. Many more schools have commissioned the payment system. Before long, all tertiary institutions in Nigeria would be linked to the online payment system, says Valentine Obi, Chief Executive Officer of eTranzact.

Students of these institutions are issued eTranzact cards which enables them carry out payments online. It also avails the students and staff of these schools the full suite of eTranzact mobile commerce services.

Obi said the payment solution, is especially suited to tertiary institutions in Nigeria because of the large intake of students. Keeping track of these payments when they are made was difficult and expensive before now.

"Now, any of these schools can track from a remote location all the payments from students in real time. The administrative cost of monitoring payments made at different banks and to different accounts has been eliminated," added Obi.

"The cards we are issuing to the students will be useful, even after graduation. It gives the holders access from their phones to services such as money transfer, paying for goods and services at point of sale terminals or over the internet, and topping up the airtime of their phones," says Obi.

The cards also allow the students register for courses and check results online, thereby eliminating time-consuming practice of filling forms manually. "As a student of any of these schools, you are automatically given a card that would enable you make all your payments and register online. The card enables mobile commerce for all card holders. So that from the comfort, privacy and mobility a mobile phone gives, the cardholder could transfer money, or receive money without the attendant stress of filling forms and queuing up at a bank hall", he emphasised.

The eTranzact platform is linked to majority of the banks in Nigeria, and very shortly, will be linked to all banks operating in Nigeria, said Folake Olabiyi of the Business Development Unit of eTranzact. "What this means is that wherever a cardholder's bank account is domiciled in Nigeria, the person could carry out different transactions using the internet or a mobile phone. eTranzact is changing the way Nigerians live, work and play, making it easier for people to pay for transactions, whatever the nature of transactions carried out."

(SOURCE: This Day)

PIRATED SOFTWARE FLOODS MARKET IN KENYA

Eight out of every ten (80 per cent) computers in Kenya operate on pirated software, says Microsoft. The firm's East Africa anti-piracy manager, Abed Hlatshwayo says only a minimal number of computers in the country had genuine software.

"There are no counterfeiters as such in the region, the issue arises as a result of organisations using one software across the organisation's network without genuine licenses," said Hlatshwayo.

Surveys by the Business Software Alliance, an international body that monitors software piracy across the world, have shown that majority of companies in Kenya buy only one genuine software programme but use pirated copies in their computer systems. He attributed the vice to ignorance on intellectual property law, adding that those using pirated software discouraged users of genuine software.

Hlatshwayo was speaking in Nairobi, when 40 computers confiscated in a swoop by the Kenya Copyright Board (KCB) were displayed to the media. The computers, whose value is Sh1.2 million, were confiscated from two retail outlets in Nairobi. They were all loaded with counterfeit Microsoft software products. KCB acting executive director, Marisella Ouma, said owners of the firm from which the computers were confiscated will be sued.

"The Government is committed to protecting intellectual property rights and all cases of infringements will now be pursued to the end," said Ms Ouma, adding a team of police officers and prosecutors has already been assigned to the board. "These officers will definitely enhance our capacity to arrest and prosecute copyright pirates as they have specialised knowledge in copyright laws," said Ms Ouma.

A State counsel attached to the KCB, Edward Sigei, said the board is in the process of constructing a copyrights database as well as an authentication device, which shall be affixed to all products approved by the board. Sigei decried the heavy losses the Kenyan economy suffered as a result of copyright infringement.

(SOURCE: The East African Standard)

LINSPIRE SWITCHES TO UBUNTU

Canonical and Linspire last week announced a deal that will see Linspire building its Linspire and Freespire Linux distributions on Ubuntu and Ubuntu users gaining access to Linspire's click and run software repository. In terms of the deal, Linspire will switch from Debian to Ubuntu as the base for their Linspire and Freespire desktop operating systems.

In a release last week the companies said that "this will mean that Linspire users will benefit from Ubuntu's fast moving development cycles and focus on usability. The Freespire community will start seeing early releases of Freespire 2.0 based on Ubuntu in the first quarter of 2007, with the final release expected in the 2nd quarter of 2007, following the official release of Ubuntu 7.04 in April.

"Ubuntu is the most successful community-based Linux project to date," said Kevin Carmony, CEO of Linspire. "They have done a fantastic job with the development community and creating tools for utilizing their technology. It made a tremendous amount of sense to partner with Canonical and begin basing our desktop Linux offerings on Ubuntu."

Linspire will continue combining proprietary drivers, codecs and applications with open source software by default in their operating systems. This approach, unique among Linux distributions, offers out-of-the-box support for a broader range of software, hardware and multimedia file types than the Debian or Ubuntu baseline alone. Linspire will continue adding other unique features that are important to its users and that make the Linspire desktop Linux easy to use and a turn-key solution for OEMs.

"This technology partnership goes a long way in advancing and unifying the Linux desktop," said Carmony. "Linux faces many challenges as it competes in a world historically dominated by Microsoft Windows, so there is plenty of work to go around and we're pleased to be able to offer differentiation and choice, while reducing fragmentation. We are very pleased to be working side by side with Canonical to integrate each of our technologies for the benefit of Linux users worldwide."

"The very nature of Free Software development is based on sharing and collaboration," said Mark Shuttleworth, founder of Ubuntu, "The less time, energy and resources Canonical and Linspire spend duplicating efforts, the more time we'll all have for unique improvements and innovation. We're pleased to see another key Linux distribution incorporating our work with Ubuntu."

In addition, Ubuntu users will gain access to the Linspire CNR e-commerce and software delivery technology. Linspire recently announced plans to make their CNR technology available for other Linux distributions in addition to their own Linspire and Freespire offerings. Today's announcement confirms that Ubuntu will be the first distribution to be supported.

Beginning with Ubuntu's 7.04 release in April of this year, Ubuntu users will be able to use the CNR client to download and install commercial programs and proprietary media drivers with one click of the mouse. In the future, Canonical plans to integrate aspects of the CNR technology so the purchase of commercial software is straightforward for desktop users.

"Over the past few years, Linspire has refined their e-commerce and software delivery technology with their CNR service," continued Shuttleworth. "For some time, we've been planning enhancements to Ubuntu's commercial software management, and it was only natural to take advantage of Linspire's new, open CNR technology rather than duplicating that work."

Ubuntu users will continue to have the same repository and installation options as before, but will enjoy expanded capabilities with the incorporation of the new CNR technology features such as access to a range of commercial consumer applications, multimedia support and games.

(SOURCE: Tectonic)

INFORMATIX OUT TO REVOLUTIONISE IT IN MALAWI

New but fast growing information technology company Informatix Limited says it is geared to reduce challenges faced by companies and individuals concerning IT in the country.

Informatix managing director Chris Kanyuka said in an interview on Tuesday IT is a tool that enterprises are rapidly using for efficiency in business.He said the deployment of IT solutions has brought with them problems arising out of poor solutions selection and delivery due to, among other factors, lack of proper information, advice and management of the deployment processes.“Having noted and experienced the above problems in the IT industry, Informatix Limited was set up to provide specialist consultancy services that are aimed at ensuring enterprises achieve efficient, value added delivery of IT solutions,” said Kanyuka.

He said, among other areas, Informatix provides consultancy in solutions selection—both hardware and software, solutions procurement (hardware and software), solution implementations, business analysis for IT, project management for IT, disaster recovery, access control systems and IT training.“Our resources include experts in IT with an aggregate of over 25 years experience in IT delivery. This expertise is backed up by appropriate certifications and experience in programming, database administration, project management, security, marketing and management. “Our consultants have tremendous experience in insurance and financial systems implementations and support,” said Kanyuka.

(SOURCE: Nation Online)

IN BRIEF:

- Rwanda and the United States February 12 signed a joint declaration, aimed at sharing experiences in science and technology. The Joint Declaration of Understanding was signed by the Minister of Technology in the President's Office Prof. Romain Murenzi, while the Assistant Secretary for Oceans, Environment and Science Ms Claudia A. McMurray signed on behalf the United States.

- In pursuant to the Federal Government's approval for the e-payment project, the Nigeria Immigration Service will from 1st March, 2007 commence the electronic payment solution for all its facilities. This will include Nigerian Passports, Seamans book, Combined Residence Permits and Aliens Cards, Visas, ECOWAS travel Certificates and ECOWAS Residence Cards.

-Algeria’s El Oued province will host on May 16, 17 and 18 the world forum on information and communication technologies, Slimane Kheireddine, CEO of national telephony operator Algeria Telecom (AT), announced Tuesday. This event that should also bring together international companies from Europe, America and Asia, has adopted the following slogan "The Arab World at the dawn of information and communication technologies,".

EGYPTIAN MOBILE OPERATOR ORASCOM POISED FOR SHOPPING SPREE

Egyptian mobile operator Orascom Telecom has the cash to make an acquisition of up to US$5 billion, Chief Executive Naguib Sawiris told MarketWatch in an interview Wednesday.

But the ambitious carrier, which has operations in half a dozen countries across the Middle East and North Africa including Pakistan, Algeria and Bangladesh, and also controls Italy's third-largest mobile operator Wind and Greece's Tim Hellas, said it wouldn't go shopping for at least another six months.

"We have the financial resources, but we don't want to take management's focus away while they work on the Hellas integration," Sawiris said. Sawiris last week agreed to buy TIM Hellas Telecommunications from two buyout firms in a deal that valued the Greek cell phone company at about $3.4 billion and extended Orascom's reach in Europe.

As the consolidation race intensifies among mobile operators in emerging markets, industry observers say Orascom will likely lead the way. The Middle East's largest telecommunications operator by market cap, it topped the 50 million-subscriber mark late last year and hopes to have 100 million by the end of next year.

Speaking at a telecoms conference in London last month, Neil Galloway, head of European telecom, media and technology banking at ABN Amro, said emerging market operators are now in a better position than their Western rivals to lead consolidation in Asia, Africa and the Middle East. Among the operators most likely to lead this merger process, Galloway listed China Mobile, the world's No. 1 mobile operator by subscribers, India's Bharti, and also Orascom Telecom and Kuwait's MTC.

Orascom's finances were recently boosted by Vodafone Group's (VOD) decision to purchase a controlling stake in Indian operator Hutchison Essar for $11 billion. Orascom is a 20% shareholder in Hutchison Telecommunications International, the holding company that sold the take to the British mobile phone giant.

Orascom had expressed an interest in buying the Indian firm, which will give Vodafone an important foothold into a highly lucrative market. Sawiris said he was disappointed the company wasn't able to connect in that deal. "The problem was the price. It's as simple as that. We couldn't afford what they could afford," he said.

Still, apart from entering a bid to win a license in Saudi Arabia later this year, the executive says Orascom is determined to keep a low profile -- for now. Sawiris, who happily admits he's "in it for the money" believes in focusing his energies. He pulled out of several operations in Africa because they yielded only about 10% of the company's revenue and were taking up 95% of management time.

Sawiris said he is definitely out of Africa. "I'm not a big fan," he said, underlining problems ranging from revenue collection to government bureaucracy and fraud. He also said the margins were too thin. Still, he admitted that Nigeria remains an exception on the continent because of its large population.

Summarizing his overall strategy after saying in a speech earlier at the 3GSM telecoms industry trade show here that he goes wherever he smells money, Sawiris said: "The challenge is to find the right vehicle at the right time at the right price. We're nearing the end of the right time in Nigeria." Sawiris has strict criteria for acquisitions. He said he will only look at highly populated countries where there's still room for growth. He's also not a fan of minority stakes.

Within Europe, Sawiris said any further acquisitions would likely be restricted to the Mediterranean region. Looking to Asia, he expressed an interest in North Korea because "it's still a very undeveloped market."

He is particularly wary of spreading his management team too thin and overextending, a mistake he says is common among larger rivals. Vodafone, for instance, operates in 23 countries. "When you have an insignificant asset in an insignificant country you end up sending an insignificant management team that do an insignificant job," he said.

(SOURCE: Cellular News)

MILLICOM RELEASED STRONG FINANCIAL RESULTS FOR 2006

Millicom International Cellular which has operations on Latin America, Africa and Asia announced strong results for the quarter and year ended in December 2006. According to Marc Beuls, its CEO “in the fourth quarter Millicom again delivered exceptional growth”. Millicom’s total subscriber base increased by 99% over the year to reach 14.9 million at the end of 2006. Particularly significant year on year percentage increase were recorded in Ghana (170%), Chad (105%), Guatemala (91%), El Salvador (88%), Honduras (86%) and Paraguay (84%).

Beuls commented further that “The very high levels of subscriber intake, 7.4 million for the whole year, went in tandem with increased capex during 200”. This reflects strong investments in the networks in all regions, but particularly in Colombia and the Democratic Republic of Congo. The progress made in building a new network in Congo allowed us to launch the Tigo brand this January, and with over 100,000 subscribers today, the first signs for the Congo business are encouraging.” The company also reported that in the fourth quarter, it cleaned up its subscriber base in Tanzania which affected net subscriber intake for the quarter but helped increase ARPU as these customers were inactive.

Total revenue for the three months ended December 2006 were $543.9 million, an increase of 99% from the fourth quarter of 2005. In Africa, fourth quarter revenues were $92.4 million compared to $58.1 million in the fourth quarter of 2005, an increase of 59%, reflecting Millicom’s investment and increased CAPEX in Africa to grow its networks. Excluding Chad, which grew by 297% from the fourth quarter of 2005 from a low base, the strongest market was again Ghana which grew by 147%. Revenues from Senegal and Tanzania are starting to see the benefits of the new branding campaign in those countries. The Democratic Republic of Congo grew 11% from the third quarter of 2006.

Total revenues for the year ending in 2006 were $1,576.1 million, an increase of 71% over 2005. Revenue for Africa were $312.1 million, increasing by 53%. EBITDA was $717.1 million for the year ended in December 2006, an increase of 64% Africa recorded a 39% increase to $122.6 million for the year ended December 2006.

MTN, GSMA AND OTHERS TO PILOT MOBILE MONEY TRANSFER

The MTN Group has announced its participation in the GSM Association (GSMA) pilot programme, which is aimed at enabling the world's 200m international migrant workers to easily and securely send money to dependents in their home countries.

By exploiting the extensive reach of the mobile networks, the programme will complement existing local remittances channels and make transferring money internationally significantly more affordable.

Spearheaded by a special group of MTN and 18 other mobile operators with networks in over 100 countries, and representing over 600m customers, the programme could double the number of recipients of international remittances to more than 1,5bn. In addition, it could assist in quadrupling the size of the international remittances market to more than $1 trillion by 2012.

To combine the strengths of the mobile and financial ecosystems, the GSMA is setting up a pilot with Mastercard. The GSMA and Mastercard plan to pilot a global hub that will link together national markets and the local payment systems run by mobile operators in partnership with the local banks. The hub will enable migrant workers to initiate international money transfers using mobile phones, and their families will be notified via their mobile phones.

International remittances, which total more than $230bn a year, are already a major source of income for many developing countries, and a very important factor in their economic development.

Says Rob Conway, CEO of the GSMA: “The creation of a global hub will enable the mobile networks, which now cover more than 80% of the world’s population, to offer the world’s burgeoning migrant population a convenient way to securely and cost-effectively transfer money to their home countries, We are mobilising financial services for the billions of people who are un-banked and the under-banked.”

(SOURCE: ICT World)

BYTES PUTS MICROSOFT STAKE IN GROUND WITH ACQUISITION OF SILVERMINUTE

In a move which will bolster its Microsoft division, Bytes Systems Integration (Bytes) has acquired Cape Town based specialist Microsoft business solutions company Silverminute. The acquisition enhances Bytes' ability to provide specialised tailor-made Microsoft solutions and services for its already extensive customer base.

“It is our goal to become the largest supplier of Microsoft business solutions and services to customers throughout South Africa, Africa and the United Kingdom (UK), and it is with this that we began looking at adding core skills to our existing Microsoft division,” states Rob Griggs, executive director at Bytes. “Silverminute immediately gives us a significantly increased capability in the specialised Microsoft development arena, providing us key development skills outside of those we already have.”

Silverminute has been working with customers both locally out of its Cape Town office and abroad, with teams previously based on projects in Switzerland, India, Australia and an office in the UK. The company assists its customers with software development, system packaging, maintenance, deployment support, technical consulting and outsourced development and services, in and around the Microsoft .NET and SOA framework.

Griggs adds that the acquisition forms part of Bytes' strategy to consolidate the Microsoft services and technology offerings, with the ultimate aim of building a one stop Microsoft solutions powerhouse in Southern Africa.

“There is a lot of movement in the local Microsoft space and we have been looking for partners who understand the software business, and at the same time have the appetite to be innovative leaders of Microsoft solutions and services within southern Africa. It is against this backdrop that after exhaustive negotiations with a number of potential suitors, we decided to align ourselves with Bytes,” says Graeme McKellar, managing director of Silverminute.

Silverminute's clients include local and international businesses. According to McKellar the company currently has clients in the UK that it works for on an outsourced basis, and services remotely over the internet. McKellar further comments: “We sell innovation and our clients rely on us to provide that much extra from their Microsoft environment.”

“We believe that Silverminute is a perfect fit with the Bytes group, they have the right cultural mix, an impressive client base, and the technical acumen to pursue markets previously only dabbled with by the Bytes group,” ends Griggs.

Silverminute brings a wealth of technical skill to Bytes, including some much sort after Microsoft Dynamics Ax architectural skills as well as solution architects to enable the best use of products and tools from Microsoft to deliver tailored customer solutions.

IN BRIEF:

- Delegates of the Arab Maghreb Union (AMU) countries met last week to discuss “ The Development of the Banker's Card in the Maghreb,” recommended to make further efforts to bring closer and harmonise regulations in the field of e-money and to develop Maghreb states' negotiation capacity with world companies.

NEW WEB SITE OFFERS TOOLS FOR IMPLEMENTATION OF RIGHT TO FOOD

FAO last week announced the launch of an interactive web site on the right to food, providing practical information for policy-makers, legal practitioners, civil society members, UN staff, academics and the general public.

Through the web site, users can increase their awareness of the human right to food, access resources for capacity-building at national and international levels, and find guidance, methods and instruments to assist in implementation of the right to food at the country level.

Resources include training materials and an e-learning course, tools to raise awareness of the right to food, and a virtual library containing manuals, technical papers, policy briefs, case studies and publications.

The right to food is the right of every person to have regular access to sufficient, nutritionally adequate and culturally acceptable food for an active, healthy life. It is the right to feed oneself in dignity, rather than a right to be fed.

The web site also features information on the Voluntary Guidelines to Support the Progressive Realization of the Right to Adequate Food in the Context of National Food Security. The Right to Food Guidelines were endorsed by the FAO Council in November 2004 and provide practical guidance to countries in their efforts to eradicate hunger by adopting a human rights-based approach.

"For the realization of the right to food, information is crucial," says Barbara Ekwall, Coordinator of FAO's Right to Food Unit, which was formed in 2006 and works to advance the implementation of the human right to adequate food. "A right can only be claimed by people who are informed. Rights can only be respected, protected and fulfilled by a country that is aware of its obligations and of means to bring about necessary changes. As a platform for information and information exchange, the dynamic web site assists rights holders and duty bearers in making the right to food a reality for all."

Development of the web site was made possible with funding from the German government. To accommodate a wide range of users, a low-band, text-only version is also available, and the information can be downloaded to CDs and disseminated locally.

"The right to food web site is an excellent resource and a fine example of internal and external collaboration - from capacity-building activities, such as the e-learning modules based on IMARK methodology, to networking and successful case studies from around the globe," says Anton Mangstl, Director of FAO's Knowledge Exchange and Capacity Building Division.

WEB 2.0 CAN BENEFIT THE WORLD'S POOR

The term 'Web 2.0' captures the transition of the worldwide web from flat websites offering static information to a new computing platform independent of earlier shackles.

The applications available include web-based word processors and spreadsheets such as gOffice or ThinkFree, online calendars like Kiko and backup services such as that provided by Mozy. Most of these also offer free storage space, acting as a kind of virtual hard disk for saving files.

As the variety and capabilities of these websites grows, it creates unpredicted opportunities -- some of which can benefit unprivileged users in the developing world. Two aspects make Web 2.0 applications particularly suited to users in the South.

First, most applications are free to use. They may not be as sophisticated as their commercial counterparts -- Google's Docs and Spreadsheets, for instance, lack many of the advanced features in Microsoft Word -- but they support almost all the features needed for simple or routine tasks.

Second, these applications are all web-based -- users create, save, and retrieve files online. Thus, they are not confined to any particular operating system or hardware.

This drastically reduces the cost of using applications, which can be run, for example, through a free web browser (such as Firefox) and a free operating system (such as Linux). Users only need access to the Internet to benefit from these applications.

In many parts of Africa and Latin America, progress has been made toward providing access via internet cafés, government installations, kiosks, and computing clubs. The Drishtee program in India and IT clubs in Egypt are products of this trend.

But the reduced costs alone will not entirely solve the access problem. Users need education -- particularly in English, the dominant language of the Web -- and a familiarity with computers to get the most out of these applications.

We are under no illusions about Web 2.0's limits. Subsistence farmers in India or Egypt, for instance, are unlikely to benefit.

But students in schools and state-sponsored or foreign aid programs are, at various levels, becoming more and more familiar with computers.

Web 2.0 can help these students create documents, track their families' or villages' business affairs in spreadsheets and save and store data online.

Many technologists disagree with us on this point. Some dismiss Web 2.0 altogether as a misleading term, insisting that these technologies are not new. They say that it is just re-packaging of existing technologies for marketing purposes, but with no added value.

It might be true that Web 2.0 is mostly based on existing technologies -- but bringing them together has made them more effective.

Web 2.0 may not be a radical technological breakthrough, but incremental advances can sometimes produce huge gains. Mobile phones, for instance, are only a few steps more advanced than fixed-line telephones. But by offering a more convenient means for disseminating information they provide users with a much clearer value than their predecessors -- and have been fast adopted by large numbers of the world's poor.

The skepticism of technologists aside, a couple of other hurdles might get in the way of putting Web 2.0 to the service of those who need it most.

One is that its applications are rarely available in local languages. Business developers, governments and societal institutions need to raise awareness of the business and development opportunities it presents and help adapt applications into local languages so more of their people can use them.

Another concern is that old hardware, commonly found in the developing world, may not be able to cope with most Web 2.0 applications. But this is often the case for new tools. Web designers and developers usually become more economical with their newfound tools as they recognise the spectrum of their audiences.

And as long as the companies providing these services continue to keep their products free -- obtaining their revenues from other sources such as advertising -- they will continue to adjust their offerings to attract more users, including those in the developing world. Web 2.0 holds the promise of a business model in which real gains flow naturally to the world's poor.

(SOURCE: SciDev.Net)

IN BRIEF:

- The Senegalese newspaper “Sud Quotidien” has “revamped” its website. Readers in Senegal and abroad will enjoy better accessibility when logging on www.sudonline.sn/

DSTV UNVEILS SEASON'S CALENDAR IN UGANDA

Satellite television Dstv, unveiled the jammed packed Supersport calendar for 2007 yesterday at Kabila Country club. At the ceremony also attended by Cranes coach Laszlo Csaba, Multichoice's public relations officer Helena Mayanja promised to make this a big year for the all the subscribers.

"This year it is going to be bigger than before for our clients, we have lots of new packages for our sports lovers this seaso" Mayanja said. "Everything is going to be bigger that it has been with many new sports programmes lined up," she added.

"Winners, trophies, action and adrenaline, that's what Supersport promises. In addition to the great football entertainment, we shall also bring you the Rugby and Cricket World Cups," Mayanja revealed.

The rugby world cup , to be hosted by France, starts on September 7 while the Cricket world cup commences on March 13 and is to be hosted by West Indies. Besides the above, part of the sporting menu this season are, the Formula One season that starts on March 18 with the Australian Grand Prix, the tennis grand slams will continue with the French Open plus other grand slams.

The European and U.S. PGA champions in will be some of the main events on the golf calendar. In addition, the Tour de France, Athletics and all the major boxing bouts will also be featured.

(SOURCE: The Monitor)

BENIN ALLOCATES 1.7 BILLION FCFA FOR PUBLIC MEDIA

The Benin government will disburse over 1.7 billion FCFA to finance priority and urgent needs of public media. According to a statement published Wednesday in Cotonou by the Benin cabinet, the move is aimed at ending the continued degradation of public media facilities, guaranteeing balanced media coverage of the national territory and the citizens` right to information.

The Benin Radio and Television Board (ORTB), the National Printing and Press Board (ONIP) and the Benin News Agency (ABP) will benefit from the grant, the statement noted.

(SOURCE: AGOP)

UDCAST AND NEWTEC TO LAUNCH SATELLITE DISTRIBUTION SYSTEM FOR MOBILE TV VIA DVB-H

UDcast, a provider of solutions that enable the delivery of IP television to mobile devices, and Newtec, a leading manufacturer of satellite communication equipment and systems, last week announced a commercial partnership to provide the mobile TV market ecosystem with a comprehensive solution for the primary distribution of DVB-H signals via satellite for commercial deployments in Q3 2007.

UDcast and Newtec offer an end-to-end solution for mobile TV from the central play-out to the remote terrestrial transmission towers. UDcast will provide the equipment and software necessary to encapsulate, multiplex, adapt, and filter the DVB-H signals. Newtec’s contribution is focused on highly efficient DVB-S2 satellite equipment, integration of all remote functionality in a single unit, and optional satellite equipment for the network management solution.

The joint system offers a unique and efficient way of sending national, regional, and local channels and advertising to different markets. The solution is based on combining all the content in one single satellite carrier. At the remote site, only the relevant channels for each market are sent to the mobile users, while synchronization in Single Frequency Networks (SFN) is maintained.

“Newtec and UDcast believe strongly in the mobile TV market and, especially in the DVB-H technology. We are also convinced that satellite represents the most efficient way to distribute DVB-H signals in national mobile TV networks,” said Serge Van Herck, CEO of Newtec. “We are very pleased to collaborate with Newtec,” replied

Didier Tymen, senior vice president and co-founder of UDcast. “As both Newtec and UDcast are leaders in their respective fields and offer complementary expertise, this partnership will create the optimal and comprehensive commercial solution for mobile operators, broadcasters, integrators, and satellite operators whowant to deliver mobile TV via DVB-H.”

PEOPLE

Celtel Group’s Founder and Chairman Dr Mohamed Ibrahim received the 2007 GSM Association Chairman’s Award

DataPro has reorganised its board and has appointed Dr Lulu Gwagwa and Thierry Dalais as directors.

EVENTS

- BROADBAND SUMMIT 2007

26-27 February 2007, Southern Sun, Grayston, South Africa

South Africa faces a huge broadband demand, from all sides. However, the broadband access media and business strategies in South Africa still do not resemble the international standards. In order to reach these standards you as ISPs, mobile and/or fixed operators, need to assess the current and future potential of the African broadband market.

For further information visit http://www.iir-conferences.co.za/eventInfo.php?e=1202

- NIGERIAN INTERNATIONAL OUTSOURCING CONFERENCE

28 February – 2 March 2007, International Conference Centre, Abuja, Nigeria,

NITDA has partnered with AITEC Africa, as the leader in ICT conferences across the continent, to host the first International Outsourcing conference in Nigeria. One of the highlights of the conference will be the launching of the National Outsourcing Association. It will also be the first time that Nigeria will be officially positioning itself as an outsourcing destination to the rest of the world.

For full details and to register as a delegate, log on to www.aitecafrica.com

- SMB ROADSHOW 2007 - MIDDLE EAST AND AFRICA

26th March 2007, Nile Hilton, Cairo, Egypt.

IDC's SMB Roadshow provides a comprehensive and trustworthy platform fordiscussing strategic IT issues directly impacting the SMB sector. Debateled by recognised experts and based on best practices and soundtechnology analysis provide objective and critical insights required byleaders in this sector. This event will target IT decision makers - byvertical industry sector - within SMBs across the region.

For further information visit http://www.idc-cema.com/events/smbeg07

- 1stWEST AFRICAN E-CONTENT SUMMIT

4-7 April 2007 – Cotonou, Benin

This ICT symposium expects to launch the official discussions to establish the “Panafrican Agency for New Media, advocated to provide training courses in new media management for young people in Africa in to bridge the content gap.

For further information visit http://www.icnm.net/

- E-LIBERIA: VISION 2010

23 April 2007, Morovia, Liberia

Her Excellency Ellen Johnson Sirleaf, President of the Republic of Liberia, is delighted to host a national dialog on the role of Information and Communication Technologies (ICT) in Liberia’s post-conflict development.E-Liberia:Vision 2010 will take place in Monrovia the week of 23 April, 2007. The program will include the unveiling of the new National ICT Policy for Liberia; a high-level workshop (on the 26th and 27th of April) with participation from domestic, regional, and international experts; a gala dinner; and a private sector innovation fair.

More information can be found at: http://www.mopt.gov.lr/

Or by contacting: Mr. Calvin Yu on calvin.yu@gatech.edu or +231 06683574.

- eLEARNING AFRICA 2007

28-30th May 2007, Kenyatta International Conference Centre, Nairobi, Kenya

The subject is Building Infrastructures and Capacities to Reach out to the Whole of Africa, reflecting the significant efforts of African countries to set up their national and regional ICT infrastructures to create access to education, training and services for all.

For further information visit www.icwe.net or call +49-30-327 6140

- ICTS FOR CIVIL SOCIETY CONFERENCE

June 2007 – South Africa

The conference and exhibition organised by SANGONeT will be aimed at increasing NGOs’ awareness of the strategic importance of their websites and the online environment in general.

For further information visit http://sangonet.org.za

- TELECOMS WORLD AFRICA

31st July - 2nd August 2007, Johannesburg, South Africa

Key decision-makers in South Africa and leading international players will share their expertise and forge invaluable business relationships in a highly interactive environment.

For further information visit www.terrapinn.com/2007/telecomza

- WI-WORLD AFRICA 2007

27 – 30 August 2007, Michelangelo Hotel, Johannesburg, South Africa.

In Africa, fixed-line infrastructure is lacking and there is a major problem with copper wire theft. Wireless communication is therefore a great alternative.

For further information visit www.terrapinn.com/2007/telecomza

JOBS AND OPPORTUNITIES

GHANA'S NATIONAL BUSINESS PLAN COMPETITION

TechnoServe, the Google Foundation and supporting companies from Ghana's private sector officially launched "Believe Begin Become, 2007" Ghana's National Business Plan Competition. Last year's competition attracted applicants from across Ghana's ten regions and produced graduates, finalists and winners who all regard the program as a crucial catalyst in their businesses' growth. The application period for "Believe Begin Become 2007" opened yesterday and will remain open until March 23, 2007 at 5:00pm. Interested applicants are encouraged to access the eligibility criteria, rules and application form the web site at www.believebegin_become.com or to pick up the full application packet from any TechnoServe office in Ghana.

PROJECT MANAGER – SOUTH AFRICA

The company is currently looking for a good Project Manager with excellent 3G & GSM Skills. The tasks involve the management of projects streams/ from planning through to a successful delivery

For further information contact advertising@balancingact-africa

CONTRACTS: WHO'S SELLING WHAT TO WHOM?

CELTEL AND MOTOROLA – NIGERIA

Celtel Nigeria has entered into a $50 million (about N6.5 billion) deal with telecoms equipment manufacturer Motorola, for the Nigerian telco's network expansion programme. The project would focus on Celtel's network spread in the South East and South regions of Nigeria.

VODAFONE AND BUBBLE MOTION – EGYPT

Bubble Motion the world's first voice short messaging service (voice SMS) provider, announced an agreement with Vodafone Egypt to launch its Mini Call BubbleTALK voice SMS to the operator's subscribers

SAFARICOM AND JINNY – KENYA

Jinny Software, a supplier of personalised messaging and media processing platforms to mobile network operators, announced that it won a deal with Safaricom to implement a Real-time Charging Gateway and Rating Engine for 3rd party content providers. The technology will allow Safaricom to charge for content and services. In addition, an IP Session Analyser (ISA) will enable the charging and rating of 2G and 3G Internet services such as Internet browsing, downloads and streaming.

BTC AND DIIMENSION DATA – BOTSWANA

South African vendor Dimension Data (DDT) has inked a USD11.3 million, twelve-month contract with Botswana Telecommunications Corporation (BTC) to install 816km of the country’s 2,400km fibre-optic ring, which will cover the bulk of Botswana and connect it with neighbouring Namibia. DDT will be deploying the fibre between Kanye in the south east and Mamuno on the Namibian border in the west. BTC, the sole wireline operator, claimed 136,463 customers at the end of 2005.

CELL C AND SUBEX AZURE – SOUTH AFRICA

Subex Azure says that it is to deploy revenue assurance and fraud management systems for South Africa's smallest network operator, Cell C. Since its inception in 2001, CellC has grown rapidly and as it continues to rollout new products and services, it needed effective systems to ensure it was protecting profits and maximizing its revenues. Subex Azure was the vendor of choice following a competitive tender and will be deploying its Moneta Revenue Assurance System and Nikira Fraud Management System

ORASCOM AND WARNER MUSIC – EGYPT

Warner Music has forged a partnership with Egypt's Orascom, the leading mobile phone group in the Middle East, that it believes will allow the companies to profitably sell music to wireless customers in a region that has been wracked by piracy.

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